Amy Fraser15 October 2024 | 9:40

Are South Africans paying far too much for smartphones?

Vodacom Group CEO Shameel Joosub recently highlighted that reducing the cost of smartphones is essential for closing South Africa's digital divide.

Are South Africans paying far too much for smartphones?

Smartphone / Pixabay: stevepb

Lester Kiewit interviews Arthur Goldstuck of World Wide Worx.

Listen below.

Reducing the cost of smartphones is essential for closing South Africa's digital divide and enhancing Internet access across the African continent.

This is the view of Vodacom Group CEO, Shameel Joosub. 

He highlighted that only 25% of the Sub-Saharan population currently has access to mobile internet, and more than half of Vodacom's customer base lacks a smartphone. 

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Communications Minister Solly Malatsi also emphasised the need to lower the luxury tax threshold to make smartphones more affordable, thereby promoting technological advancement.

"I think Shameel Joosub is correct in suggesting that the price of phones should come down even further."
- Arthur Goldstuck – World Wide Worx

Examining the prices of high-end phones in the R30,000 to R50,000 range, Goldstuck notes that South Africa's prices are significantly higher than those in many other parts of the world.

He attributes this discrepancy to the country's exchange rate and import duties. 

In contrast, he finds that prices for entry-level phones in South Africa are relatively reasonable.

"The extent to which import duties and levies add to that price tells you a story about the fact that government hasn't yet come to the party."
- Arthur Goldstuck – World Wide Worx

Scroll up to the audio player to listen to the interview.